On-money addition on property sale fails without corroboration or confrontation of third-party admission

An addition for alleged on-money on property sale could not be sustained where the recorded sale consideration was undisputed, the draft sale deed was unsigned, and no independent corroboration supported the Revenue's case. A third-party admission before the Settlement Commission could not be used against the assessee without being supplied for confrontation. In the absence of credible evidence of actual receipt of unaccounted consideration, the material relied on by the Revenue was insufficient and the addition was deleted.

---

---

Issues: Whether the addition of alleged on-money in respect of the sale of property was sustainable on the basis of an unsigned draft sale deed and a third-party admission before the Settlement Commission.

Analysis: The assessee's recorded sale consideration was undisputed, and the draft sale deed relied upon by the revenue was unsigned and unsupported by independent corroboration. The alleged admission by the purchaser before the Settlement Commission could not be used against the assessee without being supplied for confrontation. In the absence of credible evidence showing actual receipt of unaccounted consideration, the material relied upon by the revenue was insufficient to sustain the addition.

Conclusion: The addition of alleged on-money was not justified and was directed to be deleted.

---